How H-P Reclaimed Its PC Lead Over Dell
I. Hiring Todd Bradley from PalmOne
II. “HP is fighting on the wrong battlefield”
 Shift of Channel Focus (ex: Store-exclusive notebook)
III. Migration of PC demand: Desktops  Notebooks
(different buying/using behavior)
IV. H-P needed to convince shoppers that retailer was
the better channel choice  Shift of H-P PC Positioning:
Product Focus  User Focus
(“The Computer is Personal Again”)
V. Promotion Shift: More Pull  More Push*
Two Promotional Strategies**
Pull Strategy
Push Strategy
Manufacturer
Manufacturer
1*
3
Channel members
2
Final users
(consumer or industrial)
*Numbers indicate sequence
of flows
1
Channel members
2
3
Final users
(consumer or industrial)
Promotion flow
Negotiation flow
Product flow
12
Google Works on Launching Retail Stores
(WSJ)
1.
Copying Apple’s Playbook?
2.
Does Google need retail stores? Why or Why
not?
3.
What would they sell there?
4.
Microsoft Stores: How are they doing?
5.
Google Unveils Chromebook Pixel TouchScreen Laptop
Showdown in Silicon Valley
1.
Apple versus Google
2.
Apple’s Strategy
3.
Google’s Strategy
4.
Steve Job’s nightmare
5.
Who do you think will win?
Samsung and Google (WSJ)
1.
Samsung (Hardware) + Google (Software)
2.
Samsung is becoming (too) strong?
3.
Google’s Two Responses
4.
Samsung’s Response
5.
Key Takeaway
Dell’s Strategy for Growth*
1. Current Market Portfolio
* Business Model
2. Advantages of Dell Model
1. Cost efficiency of direct model
2. Customization & Responsiveness
3. Focus on detail
3. Three-Step Growth Strategy*
4. New Frontier for Dell: Consumer Electronics
Dell’s Strategy for Growth
5. Three Main Challenges for CE Market
1. No Customization and Less Responsiveness
2. Will People Buy CE Direct?
3. Dell’s Brand Equity for CE Product
Mike George’s two comments
6. Playing the OEM game (back page)
- Who are customers?
- Upside & Downside
- Response from resellers and small
manufacturers
Dell’s Strategy for Growth
7. Recent Performance (FT article in 2005)
1. Slowing growth
2. “Now Dell is the market.”
3. Heavy Reliance on PC segment
4. Slipping Price Advantage and Built-to-Order
System
5. Competitors have caught up
6. Dilemma for Dell
- Shoot low?
- Shoot high?
- Is Dell Model Obsolete for Now?
Dell To Rely Less on Direct Sales
(WSJ article in 2007)
• Dell’s Broad, Global Retail Push
– Selling Dell PC through Wal-Mart
• Why Go to Retail?
• What is happening to Its Direct business
model?
• “The Direct model has been a
revolution, but it is not a religion.”
- Michael Dell
Discounting Continues to Haunt Dell
(WSJ article in 2010)
• Revenue is up, but profit is down. Why?
– HP: Revenue is up and profit is also up
• Now no. 3 behind HP and Acer
• Share of total revenue from consumer
market: 2003 (???)  2010 (???)
• Compete against “white box”
Move Over, Coke
1. Key Challenges for small guys
2. Describe Bikoff’s Product Strategy
3. Describe Bikoff’s Marketing Strategy
* Positioning of vitaminwater
4. Describe Bikoff’s Marketing Channel
Strategy
1. Structure: types of stores, intensity, level
2. Management: support & relationship
After the Sale is Over
1. Brand Ownership Change
2. What happened to existing distribution
network of Vitaminwater?
3. What is the problem here?
4. How would you solve the problem?
5. Learning from the past: Snapple
DVD versus VHS (Part 1)
4. Buyer Behavior for a Movie DVD
1. When would you “buy” instead of “rent”?
2. How much are you willing to pay to buy?
3. When would you “rent” instead of “buy”?
4. Where would you go to “buy” or “rent”?
5. “People can be conditioned to buy just about
any movie they want to see if it is priced low
enough.” Warner Home Video Chief
“If the studios keep dropping (DVD) prices, my
margin would go through the roof, and
customers would still rent” Blockbuster Video
Chief
 Whose view do you support?
DVD Versus VHS (Part 1)
1. A Quandary for marketing DVDs for Movie
Studios
1. DVD Pricing Scheme
2. Rental-only period for DVDs?
2. Changes in Movie Pricing
1. VHS Tape: two-tier pricing* & revenue sharing
2. DVD: one mass-market pricing ($14.99)
3. Marketing Channel Changes
1. Customer Migration From Blockbuster to Wal-Mart
2. Who has more power over movie studios?
3. Power struggle between W-B and Blockbuster
4. Timing between rental and sale of movies: Different
interests among movie studios (old versus new)
Ping Golf Club
1. Through what type of channel intermediary are
Ping Clubs being sold?
2. What are key factors that drive Ping’s channel
choice?
3. What is the intensity of their distribution?
4. How would you describe Ping’s channel
Relationship management?
Video Case: The Monster that
Ate Hollywood
• Key Word: Evolution of Marketing Channel
– Supply side factor, Demand side factor,
Technology changes
• Changes in Movie Studios
• Changes in Studios’ Competitive Strategy*
– Movie Making Side
– Revenue Model (Distribution and Exhibition)
• Changes due to alternative movie
distribution channels:
– Marketing Channels:
– Products: